From what I can tell, these dogs don't "live" with any family more than a few days at a time (and often only for a few hours). I've left pets with petsitters for much longer than that. Maybe they missed the petsitter, but I don't think it really scarred them for life. Therapy pets spend a lot of time with other people, too.

I agree, though, if the CEO of the company isn't ethical it does make it less likely that the company itself will treat animals ethically. But I don't necessarily see that as a condemnation of the entire industry.